New Delhi. The Union Cabinet on Wednesday approved the establishment of 12 new industrial cities in 10 states with an estimated investment of Rs 28,602 crore to boost domestic manufacturing. Union Information and Broadcasting Minister Ashwini Vaishnav informed about this important decision taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA). This meeting was chaired by Prime Minister Narendra Modi.
Vaishnav said that the Union Cabinet has approved 12 new project proposals with an estimated investment of Rs 28,602 crore under the National Industrial Corridor Development Program (NICDP). These industrial cities will be located in Khurpiya in Uttarakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthi in Andhra Pradesh, Jodhpur-Pali in Rajasthan and Haryana.
These industrial cities are envisaged strategically near six major corridors. These projects represent a significant initiative in boosting India’s manufacturing capabilities and economic growth. This move will transform the industrial landscape of the country. It will create a strong network of industrial areas and cities that will significantly boost economic growth and global competitiveness. These cities will be developed as new smart cities of global standards. These cities will be equipped with advanced infrastructure that supports sustainable and efficient industrial operations.
NICDP is expected to generate significant employment opportunities. The formation of these cities is estimated to generate about 10 lakh direct jobs and 30 lakh indirect jobs through planned industrialisation. These projects will also generate investment potential of about Rs 1.52 lakh crore.
Appreciating this, Prime Minister Modi said on the social media platform ‘X’, “The Cabinet has taken a very important decision to build 12 industrial areas / cities under the National Industrial Corridor Development Program. Apart from promoting important infrastructure, it will accelerate growth and generate employment for many people. ” The concept of setting up these industrial cities was introduced in the budget for the financial year 2024-25. In the budget, it was announced to develop ‘plug and play’ industrial parks in or around 100 cities of the country in partnership with the states and the private sector to promote domestic manufacturing.
Eight such industrial cities are already in various stages of implementation. Land allocation for industries is underway in four cities – Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh). Besides these, in Tumkuru in Karnataka, Krishnapatnam in Andhra Pradesh, Nangal Chaudhary in Haryana and Dadri (Greater Noida) in Uttar Pradesh, the government’s special purpose vehicle (SPV) is in the process of building infrastructure such as road connectivity, water and power supply.
With the announcement of setting up 12 new industrial cities in the country, the total number of such cities will increase to 20. This move is expected to increase the share of the manufacturing sector in the country’s gross domestic product (GDP) and help in job creation. The estimated investment of Rs 28,602 crore on these projects also includes the cost of land, which is about Rs 11,000 crore.
Commerce and Industry Minister Piyush Goyal told reporters that these projects are expected to be completed in the next three years.
Goyal said, “Land has been acquired to build world-class infrastructure for these areas. These will be developed as new smart cities of global standards.” He said that multi-level connectivity infrastructure will be developed in these industrial cities to ensure seamless movement of people, goods and services.
By positioning India strongly in global value chains, NICDP will provide ready-to-use developed land parcels for immediate allotment. This will make it easier for domestic and international investors to set up manufacturing units in India.
Goyal said, “Investors will be able to get land easily in these areas. We have already taken basic environmental clearance. Anchor investors will also get discounts.”